Permanent life insurance
Permanent life insurance offers protection for your entire life, with no expiry date. In addition to the death benefit paid to your beneficiaries, it builds cash value over time. In Canada, it is often used for estate planning, protecting family assets, or securing long‑term commitments. Premiums are higher than term insurance, but coverage and accumulation are permanent.
Key advantages
- Lifetime coverage: the policy stays in force as long as premiums are paid, with no expiry date.
- Cash value that builds over time and can be used as leverage for loans or to supplement retirement income.
- Death benefit paid to your beneficiaries, generally tax-free, useful for estate planning and final expenses.
- Predictable fixed premiums (depending on the product) for long‑term protection and asset accumulation.
Who is it for?
La permanente convient aux personnes qui ont des besoins de protection ou de planification à long terme et qui souhaitent bénéficier d'une valeur de rachat.
- 1.People who want lifelong protection with cash value, without relying on a term.
- 2.Estate planning needs: providing a lump sum for heirs or to cover taxes at death.
- 3.Entrepreneurs or business owners needing coverage for financing (loan collateral, buy‑sell agreements).
- 4.Those who want to combine protection and long‑term savings in a tax‑advantaged structure.
How does it work?
You pay premiums (fixed or variable depending on the product) to keep the policy in force. Part of each premium goes toward the cost of insurance, and part builds cash value over time. On death, the death benefit is paid to your beneficiaries. While you are alive, you can generally borrow against the cash value or use it according to the policy conditions.
Permanent products vary (traditional whole life, participating, etc.). An advisor can present the options that best fit your goals and budget.
Common questions
- How is it different from term life insurance?
- Term insurance covers you for a set period (e.g. 20 years) and has no cash value. Permanent insurance covers you for life and builds cash value. Premiums are usually higher but provide long‑term protection and an asset you can use.
- Can I borrow against my permanent policy?
- Yes. The cash value can often be used as collateral for a loan from the insurer. Conditions (rates, maximum amount) vary by contract and company.